Why do we base our discipline "Economics" on wrong assumptions? Your comments will be useful as a food for thought...please
Economics is not a science, but a profession. The professional focus is on private wealth management, based on various accounting techniques. In this sense, there are different schools of economic thought, with respect to the sources of wealth creation and distributive practices.
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If history could teach us anything, it would be that private property is inextricably linked with civilization. Lv Mises
Most of the politics in the US uses a derivation of Keynesian thought. One of the prime ingredients supports BIG Government. A competing model is Friedman's ideas (see `Free to Chose') which are distrustful of Big Government (to say the least). e.g., in the 1950s, Keynesian thought suggested High employment could be sustained by supporting high inflation (printing fiat money). This resulted in `stagflation' and collapse. So, Fiedman's ideas were tried for a short while and the economy recovered. But the big Government forces again resurfaced with new Keynesian thought, The cycle restarted with emphsis on velocity of money (invest in homes). It too failed and neo-Keynesian thought changed again. So, now we seem to in the older style inflation solves the repudiation of debt and employment issues, but we'll see about the stagflation natural result.
So, not all economic models have wrong assumptions, just the ones that favor Big Government. Friedman's model seems more correct.
Dear Prof. Kahn!
May I point to the argument of Mr. Ternyik: "Economics is not a science..." I agree with this statement in the sense that there is no term such as "Economics Science". Rather people speak about economics as a branch of social sciences. Still, times are changing, as the following article showcases:
Backhouse, R.E., Medema, S. (2018). Economics, Definition of. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1940, Available at: Chapter Economics, Definition of
May I point out the Springer Nature sets "Economic Science" among the "keywords" when illustrating the publication above. Scientific research exists even in subdomains of economics:
Barbu, L. Global trends in the scientific research of the health economics: a bibliometric analysis from 1975 to 2022. Health Econ Rev 13, 31 (2023). https://doi.org/10.1186/s13561-023-00446-7, Open access: Article Global trends in the scientific research of the health econo...
There are many schools of thought within economics - this explains why there are so many "wrong" assumptions.
Yours sincerely, Bulcsu Szekely
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